Getting extra money is very simple, as long as you have a regular, demonstrable and sufficient source of income. Also, the pension counts as a valid alternative to the payroll to apply for loans. Here you can find the different products that accept this document as proof and start processing loans for pensioners:
Does age influence when asking for loans for pensioners?
Logically, both banks and private lenders take into account several factors to assess whether an applicant is eligible to access a loan, being the ability to pay one of the most important. Consequently, among the checks that are made also includes the age of the prospective customer, because being very young or very old can increase the risk of delinquency of the operation. So, if we are already retired, we can hire the following loans for pensioners depending on the age we have:
- Early retirees can take out payment or life protection insurance attached to the loan contract. In this way, the lender will be sure that we will repay in borrowed money and interest if we can not do it on our own for any reason. Life insurance will cover the insured up to 65 years, usually; the protection of payments, up to 70.
- Retirees under the age of 75 may apply for loans for pensioners by taking out insurance in addition to contracting the loan. In addition, many companies require that our age when the loan repayment is completed is less than 75 years, although this varies between entities and depending on the product we request.
- For retirees over 75 years of age, it is very likely that they will be asked to give the name of a third person as collateral, who will be responsible for paying the fees if we can do it for any reason. The risk policies of most lenders require that a guarantee is presented when a certain age is exceeded.
In most cases, the lenders establish what maximum age cannot be exceeded to access their loans for pensioners, either at the time of signing, at the expiration of the product or in both situations. This is especially important when you ask for long-term loans because our advanced age will prevent us from contracting products with extended repayment periods and will force us to return the money in less time.
Documentation to request a loan for pensioners
The main requirement that entities that offer loans for pensioners demand is to have enough income to be able to return the money and interest in the selected term. Therefore, if our age is very advanced, we may not be able to access credit, as the entity will not want to assume the risk of not recovering the loan. In general, the maximum age allowed is usually up to 75 years at the end of the term, although it may be different depending on our repayment capacity and the lender we decide to attend.
In some cases, in addition, the lender will require us to take out life insurance that covers the repayment of the loan in the event that we die. The reason why this insurance is requested is that retirees are very old, so some entities only grant loans for pensioners if they are given this extra guarantee that they will recover the money.
In any case, to demonstrate that we comply with the required conditions, we will have to present the following documentation:
- One or several incomes from the last pensions we have received to certify their characteristics of amount and regularity.
- Accreditation document for pensioner or retiree and the DNI or NIE.
- Bank statement with the latest monthly movements.
Providing this documentation, we will not have any problem in accessing the payday loans for we need- try this site www.Green-Touch.Org. The documents that the lenders need will serve to certify that we receive a pension and that we are sufficiently solvent to repay the loans without the need of over-indebtedness. In addition, they will contrast the information of our documents with the one we put on the form, so we must ensure that it is correctly translated, updated and that the photocopies are perfectly legible.
Different types of loans for different needs
Within the market, there is a wide variety of products with which we can obtain financing if we are retired. In addition to the loans for pensioners that commercializes the most traditional bank, there are also alternative credits that can come in handy, such as fast loans from certain private equity companies or even so-called reverse mortgages. Let’s see what are the main characteristics of all these products:
- Minicréditos of up to 1,200 euros: these products allow us to obtain small sums of money in less than 15 minutes, without the need to do paperwork and without having an endorsement. Their repayment period is usually up to 30 days and they are returned in a single payment, which includes the borrowed money plus the lender’s fees (interest). These credits have no commissions or linked products of any kind. Also, to achieve them it is not necessary to justify the purpose for which we will use the money, so we can ask for what we want.
- Personal loans: these loans provide us with a greater amount of cash with which we can make some of the private projects that we have always had. There are products with a specific purpose, such as reform loans to make our home the place we always dream of, or car loans to acquire the vehicle we want and pay it in more comfortable installments. These credits offer up to 60,000 euros to return in terms of up to 10 years and with a cost that is around 8% APR, although we will have to take into account our age when the contract ends to know if we are able to request them.
- Reverse mortgage: if we are over 65 years of age, we can obtain a supplement to our retirement income using our house as a guarantee of reimbursement. This product allows us to convert the value of our property into a monthly or total remuneration from which the bank will make us beneficiaries.
Depending on our financial profile and the use we want to give to our loan for pensioners, we will have to opt for one product or another. For example, if an unforeseen event arises and we have to solve it quickly, it is possible that we should request a mini credit. On the other hand, if what we want is a supplement for the pension, the reverse mortgage can be an adequate product.
Can a pensioner in ASNEF ask for a loan?
Yes, but only to private lenders or financial intermediaries. Banking entities never accept the requests of those who have incidents registered in files of defaulters, because they do not want to assume the risk of lending money to these clients. On the other hand, there are certain private equity companies that are willing to take this risk, although they only grant loans for retirees in ASNEF if minimum solvency requirements are met.
In addition, companies that grant this type of loan with ASNEF will set a limit that our debt cannot exceed. This is usually around 200 euros, although some entities allow you to owe amounts between 500 and 2,000 euros. Likewise, the origin of our non-payment cannot be financial, that is, it can not come from the loan or mortgage payment nor from the repayment of credit card terms.
If our data appear on a delinquency list as ASNEF, the possibilities we will have to obtain financing are considerably reduced. Even so, there are options such as home equity loans, with which we can obtain large amounts of cash. These credits will require that we deposit a home of which we are owners as collateral. Due to this deposit, it will not be necessary to justify our income nor will our situation in ASNEF be reviewed.